EasyJet, Europe's second-largest budget airline, yesterday announced a new baggage policy that will see passengers charged £2 for every bag put in the plane's hold.

"This replaces the previous policy where the first hold bag was free but subsequent bags were charged at £5 per item," easyJet said in an e-mail.

EasyJet will still allow carry-on bags up to 55 by 40 by 20 centimetres, without weight limit.

"Fewer checked-in bags can help to improve the operational performance of airports," said easyJet, whose passengers face increasing delays at London airports due to tighter security checks and overcrowding.

A spokesman declined to comment on the impact on revenue from the change, which takes effect on flights beginning on October 1.

Rival Ryanair on Tuesday reported that its quarterly ancillary revenues, which include baggage charges, jumped 53 per cent to €117.1 million.

EasyJet reports third-quarter results on Tuesday.